As discussed in previous posts on big data and data overload, an effective data management and analysis plan will make all the difference between actionable insights and information stockpiling. Data is vital and all businesses depend on it to make the right decisions going forward. However, there comes a time when the data becomes too much and you are faced with data overload.
If you are in market research, you are constantly faced with the challenge of focusing in on the right segments of data. It can be hard to sort through the 2.5 quintillion bytes of data that is created each day by Internet users alone. Therefore it is important that you understand big data barriers.
First, there are three main attributes to describe big data:
- Volume: The amount of information on the Internet is immense; from people posting links to their favorite blogs to customers writing reviews. This data is freely available for you to turn into valuable information.
- Velocity: The rate at which data enters the information highway is phenomenal. You have to be constantly updating trends and reevaluating assumptions.
- Variety: Data comes from many sources and consists of both structured and unstructured data.
If you do not have an effective plan in place to manage and analyze data, it can quickly escalate into data overload. Some common barriers experienced in market research include:
- Data paralysis: It is easy for a business to be overwhelmed by all the data that they have at their disposal. Without an analytics program, data becomes impossible to act on. The data is left unchecked and being a burden more than a gift.
- Expense: Efficient software, hardware and human resources are needed to make the best use of data. For some businesses, there might not be enough resources to allow for the proper use of data.
- Data privacy: You might be able to gather the data, however, you might be concerned about how you can utilize it. Due to the sensitivity of certain types of data, your company may worry about litigation proceedings from the same consumers you are trying to please.
- Real-time: Data is added to the Internet in fractions of a millisecond. It can be difficult for your business to keep up with the ever changing scope.
Despite the many challenges that come with data, the benefits of having an effective data management and analysis plan pay off. You will gain the visibility into your competitors, marketplace, and consumers–the visibility needed to position your business as a leader in innovation and consumer approval.